Sportswear retailer Under Armour has slashed its full-year sales outlook as a result of “challenges” in North America and flat revenues during its second quarter.
Under Armour has cut its full-year revenue forecast and confirmed it now anticipates full-year sales to be down to between 2% and 4% in comparison with its previously pledged expectations of “flat to up slightly”.
The global brand posted revenue of $1.6bn (£1.3bn) for the three months to September 30, 2023, down 1% on a currency-neutral basis.
Wholesale sales also declined 1% to $940m (£765.95m), while direct-to-consumer revenue increased by 3% during the quarter to reach $596m (£485.65m).
Revenue in its home market of North America dipped 2% to $991m (£807.5m), despite international revenue increasing by 5% to $573m (£466.9m).
With an eye to the rest of Under Armour’s international markets, revenue was up 9% and 3% respectively in Europe, the Middle East and Africa, and the Asia Pacific, but revenue in Latin America dropped 8% during the period.
In terms of product categories, apparel and accessory sales both increased by 3% but footwear revenue at the retailer was down 7%.
A balanced approach
Under Armour president and chief executive Stephanie Linnartz said: “Our second quarter results, particularly profitability, exceeded our expectations.
“Consequently, we are maintaining our fiscal 2024 operating income and EPS outlook even as we lower our revenue expectations primarily in response to challenges in North America during the back half of the year.
“As we execute against our strategic priorities, we will continue to take a balanced approach to driving profitability in the near term while taking the necessary steps to invest in the talent, systems, and processes to drive the top line growth that Under Armour is capable of over the long term.”
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